Monday, 2 April 2012

How to most effectively obtain a Hard Money Loan

hard money loan lenders
Hard money loan is a source of refinancing and funding business. It is special type of real estate loan which is backed by the value of property not by the financial condition of the borrower. Whether your deal is a commercial construction project, a high rise acquisition or a residential housing development, it will help you in all situations. It is called hard money because the loan conditions and terms are restrictive and hard as compared to conventional bank loans. In hard money case, money belongs to private individuals so they are much serious to ensure that their money is in right hands.

 Hard money loan is an alternative way of traditional bank loans. Banks give you loan in a long time but hard money loans fund quickly, typically within 72 hours of receiving the final docs from the Title Company. If investor or borrower need fast financing they prefer hard money lending. Banks give loans after complete verification of property but hard money does not need it. There is long tired documentation involved in bank loans but hard money does not require so much documentation. Hard money lending is becoming popular among investors in America. California is head quarter of this business. Different private lending companies operate in California to facilitate borrowers with capital to complete their business transactions.
California mortgage lenders

 To qualify for loan investor should search the right lending company. Finding the right hard money lenders in California is a challenging and time consuming process. For most effectively obtain hard money loan he must know the lending terms like LTV (Loan to Value percentage), interest rate, income tax rules and regulations, current market trends. Borrower should ask few questions from lenders to judge it. Are you a direct money lender in California? What is the loan size for hard money? What is loan to value ratio (LTV)? How long do your hard money loans last? If he found satisfied answers of these questions then he may apply for loan. Choosing right lender will guarantee you effective financing to business. Investor should have a good presentation of his or her property, photos, creatively written description to attract lender. Otherwise he ruins his money and time if he was caught by wrong lender. He will suffer a lot in this situation.
Hard Money real Estate Loans

 At last I would suggest for obtaining effective hard money loan borrower should understand all the terms and conditions regarding loan. Then after complete searching in his respective area he will find the most reliable lender. He will surely help him to restart business and finance him to complete his business needs.

For more information about hard money lending in California feel free to contact us at

1 comment:

  1. Related to the first point, if you obtain a variable rate mortgage from a lender, one of the privilages you are allowed within the mortgage contract is to lock into a fixed rate at a time of your choosing.
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